Harvesting volatility: Trading volumes in September ripe for the picking

Equity market turnover, encompassing both cash and derivatives, reached unprecedented levels in September as heightened volatility created fertile trading ground for investors.

The average daily trading volume (ADTV) for the cash segment stood at Rs 89,747 crore, a combination of both the National Stock Exchange (NSE) and BSE, surpassing the previous peak of Rs 88,621 crore recorded in February 2021.

The ADTV for the cash segment saw an 8 per cent month-on-month (M-o-M) increase and a remarkable 34 per cent year-on-year (Y-o-Y) growth.

Meanwhile, the ADTV for the derivatives segment continued its upward trajectory for the 11th consecutive month, achieving a new all-time high of Rs 357.7 trillion for both NSE and BSE combined. This marked a 14 per cent M-o-M surge and a twofold Y-o-Y growth.

The derivatives segment of BSE notably expanded threefold M-o-M to reach Rs 26.4 trillion, capturing a 7.3 per cent market share.

BSE’s market share in the cash segment stood at 6.92 per cent.

In September, the benchmark NSE Nifty50 experienced a swing of 967 points, equivalent to 4.8 per cent — the most significant movement in six months. The index reached an all-time closing high of 20,192 on September 15 before experiencing some pullbacks.

The S&P BSE Sensex also reached record highs of 67,839 after finishing in the green for the first 11 consecutive trading sessions of the month.

Additionally, the broader market, including the Nifty Midcap 100 and Nifty Smallcap 100, reached new highs.

Experts attributed the buoyant market conditions and the surge in initial public offerings as significant contributors to the increased trading volumes.